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### Basic Question 1 of 19

What is the bond equivalent yield of a 7% annual-pay bond for semi-annual compounding?

A. 6.882%
B. 7.000%
C. 7.123%

User Comment
danlan Must be <7%, so A
Winner how can you do this using a BAII without using this formula.
ramtor use iconv funtion
sp24 This video shows how do do use this function:

http://movies.atomiclearning.com/k12/ti_ba2/

Take a look at C. 2.!
tschakawaka from annual to semi-annual => interest has to get smaller due to compound interest effect - no calculation needed
chamad Using BAII ----ICONV----EFF=7 C/Y=2---CPT NOM=6.88
eb2568 awesome chamad, thanks for the tip!!
moneyguy Thanks, chamad!! Pretty darn easy now!
johntan1979 Yeah, so many formulas to remember, ICONV function really helps!

THANK YOU!
jonan203 hp12c:

1.07 <enter>
.5 <y^x>
1 <minus>
2 <times>
jrojasut09 ICONV function is the way to go thanks @chamad
khalifa92 better understand both ways formula and calculator
UcheSam There is inverse relationship between BEY and periodicity.